Calculate Entry Point Level With Fibonacci Retracement
Entry Level Based Fibonacci Retracement
Fibonacci retracement is very help full to calculate range before we make decision to trade because fibonacci retracement is very important to calculate the highest or lowest level from trending market. Off course fibonacci retracement need combined with other indicator to get accurate signal. Most accurate signal need 5 until 15 indicators that all confirmed before we take action on buy or sell position. Fibonacci retracement have a golden ratio at 1.618 or 61.8 point level. It mean on that point level usually price will bouncing. In other mean you can take action buy or sell on level 61.8 or 1.618 so it will minimize the risk of trading.
Let’s take a look some picture below : 😉
Again, just attach indicator of XIT_FIBS.mq4 to your chart and it will automatically place Fibonacci retracement lines from the highest and lowest visible bars on the chart. Lines are green when Fibonacci trend is up and red when down.
Make sure Auto Scroll is is check on your chart for the indicator to work correctly. See picture below. 😉
Here some picture fibonacci only, so not fibonacci retracement.
At the end, how to draw fibonacci retracement ? First, We need to see strong support and resistance on H1 or H4 time frame. If some strong support resistance broken by market price so at that high/low broken price on strong support resistance we take a draw fibonacci retracement. With this method we can calculating price with maximum trend and reversal entry point. Fibonacci retracement very important at least using h1 and maximum on h4 because forex contract price made on every 4 hours. Here’s my fibonacci retracement indicators collection that you can download and test, just click here. 😉